Coronavirus outbreak has forced UK government to postpone the extension of the off-payroll working rules to private sector employers for 12 months. On 17th March Chancellor Rishi Sunak has announced that a GBP350-billion support package would be made available to help businesses through the coronavirus-related economic crisis.
The reforms were originally planned to take effect on 6 April this year. As it stands now the government remained committed to reintroducing the policy with a new commencement date of 6 April 2021. The government continues to believe that it is right to address the fundamental unfairness of non-compliance with the existing off-payroll working rules. However the government also recognises that the reforms would be a significant change for both businesses and contractors. Many contractors and freelancers affected by the extension to the private sector were at risk of losing work with no sick pay.
For many businesses, this announcement will give much needed breathing space to be able to manage the impact of the reforms, particularly as they will introduce a radical new landscape, and potentially significant new tax and NIC obligations, for businesses contracting workers through personal service companies. The Chartered Institute of Taxation welcomed the announcement but called for the deferral of more legislation scheduled to take place from next month. These include measures limiting the availability of private residence relief, and the new 30-day capital gains tax reporting and payment obligations. #OffPayroll #Reforms #Contractors #Freelancers #Postpone #PrivateSector #businesssupport #UKgovernment